Netflix tells customer, “The Verizon network is crowded right now”

"This is a PR stunt" and "seems misleading," Verizon says.

Netflix has found another way to insult Internet service providers that it blames for poor performance. Netflix customer Yuri Victor, a designer for Vox Media, last night tweeted a picture of a message he got from Netflix that said, "The Verizon network is crowded right now. Adjusting video for smoother playback..."

Netflix already releases monthly speed rankings for each Internet provider, and those showed that Netflix performance on Verizon and Comcast was dropping for months as the companies squabbled over money. After Netflix paid Comcast for a direct connection to its network—a "paid peering" deal—performance improved 65 percent.

Further Reading

Customers are the victim of stalled negotiations between ISPs and Netflix.

Netflix subsequently agreed to pay Verizon for a similar connection in a deal announced April 28. It takes time to establish all the necessary links between Netflix and ISP networks, though, so it's possible some of the traffic is still going through congested ports. It's also possible there's a problem somewhere else in the network. Netflix wants to make sure customers blame Verizon instead of itself, but it's not clear exactly how the company is determining where the congestion lies.

"This is a PR stunt," a Verizon spokesperson told Ars. "We're investigating this claim but it seems misleading."

Netflix didn't answer an e-mail from Ars, but a Netflix spokesperson said on Twitter that "we're always testing new ways to keep members informed."

In the latest Netflix speed rankings in the US, Verizon FiOS was measured at an average of 1.99Mbps per stream while Verizon DSL scored a 1.08Mbps average. Google Fiber was in first place with 3.58Mbps while Comcast is up to 2.77Mbps. The ranking covers April, so it doesn't take into account the new connection between Netflix and Verizon. Rankings for May should come out within a few days.

UPDATE: Verizon VP David Young responded to Netflix's claims in a blog post, saying, "Netflix is solely responsible for choosing how their traffic is routed into any ISP’s network... It is sad that Netflix is willing to deliberately mislead its customers so they can be used as pawns in business negotiations and regulatory proceedings. It would be more accurate for Netflix's message screen to say: 'The path that we have chosen to reach Verizon’s network is crowded right now.' However, that would highlight their responsibility for the problem."

UPDATE 2: Netflix spokesperson Joris Evers responded to our inquiry, saying, "We are testing ways to let consumers know how their Netflix experience is being affected by congestion on their broadband provider's network. At present, we are testing in the US in areas serviced by many broadband providers. This test started in early May."

Evers pointed out that an AT&T customer reported seeing a similar message in May. The customer wrote on Twitter, "So Netflix is throwing up a 'The AT&T network is crowded right now' message. Meanwhile, Youtube is playing 1080p no problem."

I don't know why they waited until after they started caving to ISPs' demands before they started doing this. They should have done this first and then just let the ISPs take the heat from their customers.

Maybe, If verizon gets 10000 calls an hour during next 'House Of Cards' premiere they will realize what is cheaper:Fix the problemOr keep pretending it does not exists while the need to hire 100 CSRs listening to complaints all day

Maybe, If verizon gets 10000 calls an hour during next 'House Of Cards' premiere they will realize what is cheaper:Fix the problemOr keep pretending it does not exists while the need to hire 100 CSRs listening to complaints all day

#capitalism

Considering how little a telephone operator in Bangladesh costs, probably the second option.

I don't know why they waited until after they started caving to ISPs' demands before they started doing this. They should have done this first and then just let the ISPs take the heat from their customers.

*shrug* I bet Verizon came back to them and told Netflix that the fee negotiated wasn't actually enough to "cover costs", and wanted more to ensure a "quality connection" for Netflix subscribers.

Maybe, If verizon gets 10000 calls an hour during next 'House Of Cards' premiere they will realize what is cheaper:Fix the problemOr keep pretending it does not exists while the need to hire 100 CSRs listening to complaints all day

#capitalism

Considering how little a telephone operator in Bangladesh costs, probably the second option.

>>implying they would hire ANYONE to take care of additional complaints. The reality is, people will complain to Verizon for maybe a week, but given the lack of options, either live with it or cancel their Netflix sub as a worthless investment.

I don't know why they waited until after they started caving to ISPs' demands before they started doing this. They should have done this first and then just let the ISPs take the heat from their customers.

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That, or when they announced their price increase, lay the blame squarely on Comcast and AT&T's shoulders. Let their customers know exactly why their monthly cost is increasing.

Heh he should have added, "Verizon has been diligently issuing a quarterly dividend since forever and could have been re-investing that money into improving their network infrastructure." But I digress...

I don't know why they waited until after they started caving to ISPs' demands before they started doing this. They should have done this first and then just let the ISPs take the heat from their customers.

++

That, or when they announced their price increase, lay the blame squarely on Comcast and AT&T's shoulders. Let their customers know exactly why their monthly cost is increasing.

If netflix is already paying my ISP to deliver video to my house, does that mean I can watch netflix without buying Internet access myself? Or do we pay twice for the same content delivery?

Even better if Netflix's message were to say how the customer's ISP's network compared to *other* ISPs in the area at that moment in time. E.g., "Current Netflix Speeds in Your Area: Verizon FIOS=1.66; Verizon DSL=0.85; Cox=2.35".... (just pulling numbers out of my head)

Good for Netflix. Let the customers know that their ISP is the problem.

You are trusting that Netflix isn't trying to shift blame for something internal. We all know that ISP's ARE throttling bandwidth. That is a given and can't be disputed. However it could now be a convenient excuse for them. Easiest way to check. VPN. Netflix with VPN, Netflix without it. Same behavior?

The difference being that Netflix is compelled by commercial rationale to provide the best possible service to their customers, whereas Verizon has exactly the opposite commercial compulsion with regard to Netflix's customers. In addition to the fact that Netflix's technological competency has always impressed me (their streaming performance consistently seems far superior to HBO, Hulu etc in my anecdotal experience), I'm inclined to blame the ISP for 99% of subpar Netflix experiences.

Edit: I would also add, that the VPN trick only indicates that your ISP is not throttling that particular service, it won't help you if you are just receiving an all-round lousy internet experience that is far inferior to the service you are nominally paying for — this is something that also seems common to me, anecdotally, in the US.

Good for Netflix. Let the customers know that their ISP is the problem.

You are trusting that Netflix isn't trying to shift blame for something internal. We all know that ISP's ARE throttling bandwidth. That is a given and can't be disputed. However it could now be a convenient excuse for them. Easiest way to check. VPN. Netflix with VPN, Netflix without it. Same behavior?

True, there are other possibilities, but the most likely cause is Verizon, and I trust Netflix more than I trust Verizon.

Good for Netflix. Let the customers know that their ISP is the problem.

You are trusting that Netflix isn't trying to shift blame for something internal. We all know that ISP's ARE throttling bandwidth. That is a given and can't be disputed. However it could now be a convenient excuse for them. Easiest way to check. VPN. Netflix with VPN, Netflix without it. Same behavior?

That wouldn't test if Netflix's connection was busy, only if your ISP was throttling them. Which is pretty much what they're doing here...

Going by Netflix's past actions, I don't think they'd have a problem telling you their network is congested or busy.

Um... I wish they could tier the Netflix subscriptions with a breakdown (I realise this isn't really practical, but I like the idea anyway). Then, whenever an offending ISP wanted to put up a paid peering fee charged to Netflix, it would go directly back to their consumers who would know exactly who to blame.

Adding a little pop-up box for the relevant users each month if they try to access HD would really rub it in - "Unfortunately your ISP adds additional bandwidth charges to see this content in HD. Do you wish to proceed Y/N. Click here for a list of ISPs who do not charge for this service".

I don't know why they waited until after they started caving to ISPs' demands before they started doing this. They should have done this first and then just let the ISPs take the heat from their customers.

++

That, or when they announced their price increase, lay the blame squarely on Comcast and AT&T's shoulders. Let their customers know exactly why their monthly cost is increasing.

If it were true, that would work.

Even if every ISP demanded the same deal, it would account for a quarter or less of the dollar increase (as is IIRC it's more like ten cents). The other seventy-five cents go to content acquisition, overhead, shareholders, etc.